Bed Bath & Beyond Gets Fresh $40 Million to Fund Bankruptcy
- Sixth Street is agent on retailer’s Chapter 11 financing
- Approved funding rolls-up $200 million in existing debt
This article is for subscribers only.
Bed Bath & Beyond Inc. won permission Monday to tap $40 million, money the retailer said it needs to cover payroll for its roughly 14,000 employees and buy management time to try and locate a buyer in Chapter 11 bankruptcy to rescue some or all of its stores.
US Bankruptcy Judge Vincent Papalia in a hearing Monday said the urgent funding provided by Bed Bath & Beyond’s lenders averts a potential “fire sale” and immediate liquidation of the 52-year-old retail chain. The financing approved Monday includes a May 28 deadline for bids on the company’s assets.